Whether a business owner needs workers’ compensation insurance depends on how the business is set up and who is considered an employee. Michigan workers’ compensation generally protects employees, but we believe coverage for a business owner is worth looking into when it is available.

Who Needs Workers’ Compensation Insurance in Michigan?

Michigan businesses may be required to carry workers’ compensation insurance if they regularly employ three or more people at one time. Coverage may also be required if one employee works 35 hours or more per week for at least 13 weeks during a 52-week period.

Failing to carry insurance can cause serious problems. The business may still be responsible for an injured worker’s medical treatment and wage loss benefits, and officers or directors could potentially face personal liability and penalties.

Are Business Owners Covered?

Self-employed individual and sole proprietors are generally not covered because workers’ compensation is designed to protect employees. Partnerships, LLCs, and closely held corporation may also have different coverage options or exclusions.

These rules can get confusing quickly, so business owners should speak with their insurance broker about what coverage makes sense for their situation.

What Does Workers’ Compensation Cover?

Workers’ compensation can pay for reasonable and necessary medical treatment related to a workplace injury. This can include doctor visits, physical therapy, surgery, and other medical care without copays or deductibles.

If an injury keeps an employee from working, wage loss benefits may also be available. These benefits are generally based on 80% of the worker’s after-tax average weekly wage, subject to Michigan’s maximum benefit rate.

For business owners, having workers’ compensation coverage can help protect against large medical bills and lost income after a serious workplace injury, It may be worth speaking with an insurance broker and finding out what options are available.

Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation

Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.

• The article is for general informational purposes.
• Reading it does not create an attorney-client relationship.
• The information may not apply to every person’s situation.
• People should contact an attorney for advice about their specific case.